Carlsberg reported a 4.9 percent increase in third-quarter 2026 revenue to DKK 25.28 billion (USD 3.77 billion), supported by strong soft drink sales and favorable currency movements. Organic revenue increased by 3.0 percent, while total beverage volumes edged up just 0.3 percent to 40.8 million hectoliters (hl). Revenue per hectoliter improved by 3 percent, demonstrating the group's ability to generate higher sales despite stagnating overall volumes.
The figures highlight an accelerating shift in Carlsberg's business model. Traditional beer volumes declined by 3.5 percent to 26.7 million hl, while soft drinks and other beverages increased by 8.5 percent to 14.1 million hl. Within the latter category, soft drinks grew organically by 9 percent. Alcohol-free beer volumes increased by 11 percent, with particularly strong growth in Western Europe, while the premium beer portfolio contracted by 3 percent, largely due to weakness in China. The group's Beyond Beer category, which includes flavored alcoholic beverages, expanded by 3 percent.
Performance varied considerably across Carlsberg's international brands. Total volumes of Carlsberg beer increased by 3 percent, driven by a 20 percent surge in its premium segment, particularly in China and South Asia. However, the mainstream version faced declining demand in the United Kingdom. Tuborg remained flat overall, while 1664 Blanc declined by 5 percent, mainly because of weaker sales in China and certain export markets. In contrast, Pepsi volumes increased by 18 percent, making it one of the group's strongest-growing international brands.
Regional results reflected the contrasting dynamics of beer and non-alcoholic beverages. Western Europe achieved organic revenue growth of 2.5 percent despite weak mainstream beer demand in the United Kingdom, Poland and Germany. Central and Eastern Europe and India (CEEI) delivered an impressive 11.7 percent increase in organic revenue, supported by strong beer sales in South Asia and the rapid expansion of soft drinks in Kazakhstan. The region's beverage volumes increased by 7.5 percent.
Asia remained the weakest region, with organic revenue declining by 4.6 percent and volumes falling by 6.7 percent. In China, Carlsberg's quarterly volumes dropped by almost 10 percent as weak consumer sentiment, heavy summer rainfall and subsequent inventory reductions weighed on demand. However, Vietnam achieved mid-single-digit volume growth, while Laos recorded high-single-digit growth.
A central element of Carlsberg's diversification strategy is its expanding relationship with PepsiCo. According to Chief Executive Officer Jacob Aarup-Andersen, the brewer expects its PepsiCo bottling footprint to increase from five markets in 2024 to 17 by January 2029, following the implementation of recently agreed partnerships and acquisitions.
The expansion includes the takeover of PepsiCo bottling activities in Azerbaijan from January 2027 and agreements to acquire existing bottling businesses in Georgia and Armenia, subject to the relevant closing conditions. These operations will establish a stronger regional production and distribution network in the South Caucasus. In Northern Europe, Carlsberg will assume PepsiCo bottling rights in Denmark, Finland, Estonia, Latvia and Lithuania from January 2029, complementing its existing operations in Sweden and Norway (inside.beer, 21.04.2026).
Meanwhile, Carlsberg has opened a new soft drinks production facility in Kazakhstan, its first greenfield carbonated soft drinks plant. The facility began operating in early October and is expected to take over the entire local Pepsi production volume by the end of 2026. Chief Financial Officer Ulrica Fearn indicated that completing this transition should generate a substantial improvement in profitability during 2027. Kazakhstan's total beverage volumes almost doubled during the quarter, supported by the addition of the Pepsi business.
Carlsberg is also advancing its previously announced strategic joint venture with Sapporo Breweries in Southeast Asia and Hong Kong. Under the agreement, Sapporo will acquire a 25 percent stake in Carlsberg's relevant regional operations for USD 643 million, leaving the Danish group with a 75 percent majority interest and operational control. The transaction is expected to close in the fourth quarter of 2026 (inside.beer, 06.07.2026).
The group's transformation has already been significantly accelerated by the acquisition of British soft drinks producer Britvic, whose integration has contributed to improving the company's earnings outlook (inside.beer, 19.08.2026). Alongside the expansion of its PepsiCo activities, Carlsberg is considering a potential initial public offering of its Indian business, with an updated draft prospectus filed on October 28.
Despite continued uncertainty in China and declining mainstream beer consumption in several important markets, Carlsberg reaffirmed its full-year 2026 guidance for organic operating profit growth of 4 to 6 percent. The results demonstrate how the group's expanding soft drinks portfolio is increasingly compensating for weakness in traditional brewing, although the long-term profitability of its growing non-beer activities remains an important measure of the strategy's success.
